THEBUSINESSBYTES BUREAU
NEW DELHI, SEPTEMBER 14, 2026
India’s wholesale price-based
inflation accelerated to 9.92 per cent in August, up from 9.78 per cent in
July, as prices of food, manufactured products and fuel and power continued to
rise, government data showed on Monday.
The latest reading marks a
further strengthening of wholesale inflation pressures at a time when global
commodity markets remain volatile.
Inflation in the food index rose
to 7.05 per cent in August, from 6.65 per cent in July. Wholesale inflation in
manufactured products also climbed to a series high of 8.37 per cent, compared
with 8.29 per cent in the previous month.
The fuel and power basket
recorded inflation of 22.93 per cent, reflecting continued pressure from
elevated energy costs.
“Across groups, mineral oils
(containing petroleum products), food articles, manufacture of food products,
manufacture of basic metals, non-food articles, and manufacture of chemicals
and chemical products have been major drivers of WPI inflation in August 2026,”
the Commerce and Industry Ministry said while releasing the data.
Wholesale price inflation has
been on an upward trajectory since the beginning of the current fiscal year,
with the West Asia conflict and the resultant disruption around the Strait of
Hormuz adding to global crude oil and fertiliser costs. The increase in input
and energy prices has also had a spillover impact on food prices.
The sustained rise in wholesale inflation comes against the backdrop of the Reserve Bank of India’s cautious monetary policy stance. The RBI Monetary Policy Committee last month kept the benchmark policy rate unchanged at 5.25 per cent and projected retail inflation at 5 per cent for FY27, citing deficient and uneven southwest monsoon conditions amid El Niño.
The August WPI data suggest that input-cost pressures remain broad-based, potentially complicating the inflation outlook for businesses and policymakers as the economy navigates elevated energy and commodity prices.
